Comparing Net Present Value
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There are two mutually exclusive projects with the following net cash flows:
Project A
-200,000
1. 65,000
2. 60,000
3. 50,000
4. 65,000
5. 50,000
Project B
-125,000
1.60,000
2.40,000
3.40,000
4.35,000
5.45,000
If the company's cost of capital is 12 percent, which project would you choose?
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Solution Summary
This response determines which project has a greater net present value.
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Year Project A Project ...
Education
- MBA, Indian Institute of Finance
- Bsc, Madras University
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